1. MKT547 GROUP ASSIGNMENT
2010765699 IMRAN HAQ B ABD AZIZ
2007118301 IZKEIR AIDIL B IBRAHIM RAIS
2008250376 MIOR FAIRIS MIOR ROSDI
2009663562 AHMAD ZAFLI AHMAD ZAKI
2008250384 MOHD FAHMIE MUSTAFA
Question
Assume that you are working in the marketing department of Maduria. The company
is developing a new carbonated energy drinks named “MaduriaEnergyz”. You are
convinced that promotion is the best way to launch this new product. Explain what
the term “promotion” means, discuss how it is different than advertising, and list the
types of promotions appropriate for each of the potential target groups (sales force,
retailers, and consumers) of sales promotion for this type of product. (20 marks)
ANSWER
Promotion refers to any incentive manufactureres, retailers an d even not profit
organizations use that serve to change a brand’s perceived price or value
temporarily. It use to encourage the manufacturer’s sales force to sell it aggressively.
Retailers use promotional incentives to encourage desired behaviors from their
consumers-shop at store rather than a competitors, buy this brand rather than
another, purchase larger quantities, ect. It is one of the market mix elements. These
elements are personal selling, advertising, sales promotion, direct marketing, and
publicity. A promotional mix specifies how much attention to pay to each of the five
subcategories, and how much money to budget for each. A promotional plan can
have a wide range of objectives, including: sales increases, new product acceptance,
creation of brand equity, positioning, competitive retaliations, or creation of
a corporate image. Fundamentally, however there are three basic objectives of
promotion. These are :

2. 1. To present information to consumers as well as others.
2. To increase demand.
3. To differentiate a product.
There are different ways to promote a product in different areas of media. Promoters
use internet advertisement, special events, endorsements, and newspapers to
advertise their product. Many times with the purchase of a product there is an
incentive like discounts, free items, or a contest. This is to increase the sales of a
given product.
Advertising is a paid, mediated form of communication from an identifiable source,
design to persuade the receiver to take some action, now or in the future. It is form
of communication used to encourage or persuade an audience (viewers, readers or
listeners; sometimes a specific group of people) to continue or take some new action.
Most commonly, the desired result is to drive consumer behavior with respect to a
commercial offering, although political and ideological advertising is also common.
Advertising messages are usually paid for by sponsors and viewed via various
traditional media; including mass media such as newspaper, magazines, television
commercial, radio advertisement, outdoor advertising or direct mail; or new
media such as blogs, websites or text messages. Commercial advertisers often seek
to generate increased consumption of their products or services through "branding,"
which involves the repetition of an image or product name in an effort to associate
certain qualities with the brand in the minds of consumers. Non-
commercial advertisers who spend money to advertise items other than a consumer
product or service include political parties, interest groups, religious organizations
and governmental agencies.

3. Types of promotions appropriate for MaduriaEnergyz.
Three groups – a manufacturer’s sales force, retailers, and comsumers- are targets
of sales promotional efforts ( see figure 1). First, trade- and consumer-oriented sales
promotion provide the manufacturer’s sales force with the necessary tools for
aggressively and enthusiastically selling to wholesale and retail buyers. That is, sales
people have an incentive to put special selling emphasis behing promoted brands.
A second target of sales promotion efforts is the trade, including wholesalers
but especially retailers. Various types of allowances, discounts, contests, and
advertising support programs are used in a forward thrust from manufacturers to
trade accounts (reffered to as push efforts) that provide retailers with reasons for
stocking, displaying, advertising, and perhaps placing the promoted brand on a price
discounted deal. Third, the use of consumer-oriented promotions (e.g., coupons,
samples, premiums, cents-off deals, sweepstakes, and contests) serves to pull a
brand through the channel by providing consumers with a special reason to purchase
a promoted brand on a trial or repeat basis.
Figure 1
Brand-Level Promotion
Encourage Push Pull
Sales Force Retailers Consumers